Paper short abstract:

This paper will critically examine the thesis of GVC-oriented industrial policy and the growing consensus that the geographical fragmentation of today's industries is not compatible with traditional industrial policy. This is done from the perspective of Africa.

Paper long abstract:

This paper critically examines the thesis of GVC-oriented industrial policy and the view that traditional industrial policy is no longer relevant. Placing Africa at the core of GVC-oriented industrial policy reveals several problems. For example, GVC-oriented industrial policy puts African countries at a clear disadvantage due to shortcomings like weak infrastructure and a poorly trained workforcIs traditional industrial policy defunct? Evidence from the Nigerian cement industrye. Traditional industrial policy has the potential to overcome some of the above shortcomings. Furthermore, some of the main benefits of industrialization are missing from GVC-oriented industrial policy, such as linkages (e.g. infrastructural linkages and production linkages to near-by products). Using the example of industrial policy in Nigeria's cement sector, the paper will argue for the relevance of traditional industrial policy, whereby a country seeks to build a complete production chain within its borders. The paper will propose the a two-step conception of industrial policy in Africa - the building of domestic production chains to augments domestic skills and capability, fosters linkages and helps to create lead firms - before turning to GVC-oriented industrial policy.